NEW YORK, July 18, 2026, 14:02 EDT
- Shares closed Friday at $137.12, down 0.2% on a Friday-to-Friday basis.
- International units supplied 209% of quarterly core operating-profit growth on 44% of sales.
- North American organic revenue fell 0.5%. Full-year guidance remained unchanged.
PepsiCo’s international businesses supplied more than all its second-quarter core operating-profit growth. Overseas execution now provides the main support for earnings.
Those units generated a $326 million profit increase. Total company growth was only $156 million. North American core operating profit fell by $121 million.
U.S. markets were closed Saturday. PepsiCo ended Friday at $137.12, down 1.66% during the session.
The shares slipped 0.2% from the previous Friday’s close. The S&P 500 lost 1.5% over the same week.
The regional divide was much wider. International businesses produced 44% of revenue, but 209% of core profit growth. Higher corporate expense absorbed another $49 million. Regional figures below are calculated from PepsiCo’s segment disclosures.
| Q2 performance | Reported revenue | Organic revenue change | Core operating-profit change | Added core profit |
|---|---|---|---|---|
| North America | $13.61 billion | -0.5% | -4.9% | -$121 million |
| International | $10.57 billion | +7.0% | +17.8% | +$326 million |
| Corporate unallocated | — | — | — | -$49 million |
| PepsiCo total | $24.18 billion | +2.4% | +4.0% | +$156 million |
International beverage volume grew 5%. International convenient-food volume rose 4%. PepsiCo Beverages North America volume fell 4%.
PepsiCo Foods North America recorded flat volume and 2% lower organic revenue. Lower net pricing accounted for the sales decline.
Chief Executive Ramon Laguarta said global organic volume grew at its “highest rate since 2022.” Developing and emerging markets produce about 80% of international revenue. PepsiCo
The U.S. repair remains incomplete. PepsiCo cut prices by as much as 15% on several large snack brands. Stephanie Link, Hightower Advisors’ chief investment officer, said investors “certainly want better volumes in the face of them lowering price.” Reuters
The valuation reflects that doubt. PepsiCo trades at about 18.0 times trailing earnings. The Coca-Cola Company NYSE:KO trades at 25.6 times, while Mondelez International, Inc. NASDAQ:MDLZ trades at 30.2 times.
PepsiCo’s multiple is about 30% below Coca-Cola’s. It is roughly 40% below Mondelez’s. Still, PepsiCo shares remain 20% below their February 52-week high.
Oil will remain a near-term pressure point. Brent crude rose above $87 on Friday as Iran tensions worsened. PepsiCo has already warned of higher second-half commodity, packaging and logistics costs.
The next direct peer results arrive after the coming week. Coca-Cola reports on July 28. Keurig Dr Pepper Inc. NASDAQ:KDP follows on August 6.
PepsiCo maintained its 2026 organic revenue target of 2% to 4%. It also expects core constant-currency earnings per share to rise 4% to 6%.
Risks remain concentrated in two places. Weaker emerging-market demand or adverse currencies could slow the current profit engine. Further U.S. price cuts could also reduce margins without restoring volume.
For now, the calculation is stark. Forty-four percent of sales generated 209% of core operating-profit growth.
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